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Use Excel to solve. 423943.4 and 1091547 is not the answer. the new edition comes out. The publisher estimates that demand for the book during
Use Excel to solve. 423943.4 and 1091547 is not the answer.
the new edition comes out. The publisher estimates that demand for the book during the next year is governed by the probability distribution in the file P15_31.xlsx. A production run incurs a fixed cost of $10,000 plus a variable cost of $15 per book printed. Books are sold for $120 per book. Any demand that cannot be met incurs a penalty cost of $20 per book, due to loss of goodwill. Up to 500 of any leftover books can be sold to Barnes \& Noble for $35 per book. The publisher is interested in maximizing expected profit. The following printrun sizes are under consideration: 0 (no production run) to 10,000 in increments of 1000 . What decision would you recommend? Use simulation with 1000 replications. Round your answer to the nearest whole number, if necessary. Optimal print size: answers to the nearest whole dollar, if necessary. LowerUpper$$ \begin{tabular}{|r|r|} \hline Demand & Probability \\ \hline 3000 & 0.40 \\ \hline 4000 & 0.20 \\ \hline 6000 & 0.10 \\ \hline 8000 & 0.20 \\ \hline 10000 & 0.10 \\ \hline \end{tabular}Step by Step Solution
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